Loan Officer | NMLS #341095
Branch NMLS #1647193
Posted On August 07, 2019
We all have savings goals we are trying to reach. While we generally can’t change when we need to buy something, we can change how we buy it. Buying used instead of new can help you save substantially on some more expensive necessities. Whether you’re saving to pay down student loans, buy a home, or invest elsewhere, these simple strategies can help boost your savings efforts.
Save money by avoiding overspending in these five categories.
Vehicles – when you buy a brand new car or truck, it depreciates significantly as soon as you drive it off of the lot. In many cases, buying the same model, loaded with features, that is a few years old will cost less than the current model without features. When buying a used vehicle beware of frame damage, flood damage, or salvage history. Working with a used car retailer or dealership will help you gather objective information about the vehicle’s history versus working one-on-one with a private seller.
Baby Supplies – speaking of cars, some new parents have found shopping for their first stroller like shopping for their first car! Do you need an expensive jogging stroller if you didn’t jog before the birth of your child? What about a stroller equipped for sandy terrain when you just take one trip to the beach each year? Renting or buying used baby equipment can help you save on occasional-use baby gear and also more expensive items. Sometimes, you may wish to rent an expensive stroller to see if it’s worth the investment before you buy. When buying used, watch for product recalls. SafeKids.org provides a monthly list of recalls on baby equipment like strollers, toys, and more.
Electronics – from laptops to cell phones to smart watches, almost all of your favorite electronic devices are available for resale, either used or refurbished. Many retailers like Apple, Samsung, and Bose refurbish and resell their own devices. When buying used electronics, pay attention to the warranty. You may have anywhere from 90 days to a full year to return the device if it doesn’t work the way you’d hoped.
Formal Clothing – when dressing for a big event, consider renting your ensemble before buying something you may only wear once. Men have been able to rent tuxedos and suits for years, and now with services like Rent the Runway, women can join them. Other subscription services provide workwear you can use for a set period of time and then exchange to refresh your wardrobe. A subscription service could save what you spend replacing clothing throughout the year.
Sports and Hobbies – whether you or your children are starting a new hobby, consider buying used equipment first. The last thing you want to do is invest in brand new hockey gear only to have your child choose football next season. Plenty of major sports retailers offer rental programs too. Before you buy, test the waters to see if windsurfing really is your calling.
Changing your spending habits is one way to control how much you spend and how much you save. Buying some of your more expensive necessities used instead of new can help you reach your savings goals.
Sources: NBC News